Certificates of Participation Presented to Board of Trustees - - PowerPoint PPT Presentation
Discussion Certificates of Participation Presented to Board of Trustees February 25, 2020 Agenda Review Facts of Current Certificates of Participation (COP) History of Funding MJUSD Facilities Improvements Reasons COPs Were Needed
Presented to Board of Trustees February 25, 2020
Review Facts of Current Certificates of Participation (COP) History of Funding MJUSD Facilities Improvements Reasons COPs Were Needed Original Payment Plan for COPs Opportunity to Refund the 2012 COPs
MJUSD Regular Board Meeting February 25, 2020 2
2012 – Issued COPs for $18.4 Million
Purpose: 1. Fund 2012 Capital Projects
Repayment:
Beginning June 2022 – Annual Amount $2.8M
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Long-term Debt Fact: Unlike General Obligation Bonds, which are repaid by taxpayers, Certificates of Participation must be repaid by the District, yet both GO Bonds and COPs are considered Long-term Debt.
MJUSD Regular Board Meeting February 25, 2020 4
From page 7 of the June 28, 2016 Facilities Master Plan $133.6 Million in Facilities Improvements from 2005-06 thru 2015-16
According to the June 2016 MJUSD Facility Master Plan:
Approximately $133.6 million has been spent at District
school sites on Facilities Improvements since 2005-06.
The District has been active in building and maintaining
facilities.
In 2006, voters of the District approved the issuance of $37
million of General Obligation (GO) Bonds. All of the bonds were issued and spent on capital projects throughout the District.
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(continued)
In 2008, voters of the District approved the issuance of an
additional $47 million of GO Bonds.
As of 2016, approximately $34.4 million of the $47 million in GO
Bonds was issued to fund capital facilities projects. $12.6 million of GO Bonds remained to be issued.
2018 to Current:
In 2018, the final tranche of $12.6 million of GO Bonds was
issued to fund capital facilities projects to be determined.
In January 2020, the Board of Trustees approved the Arboga TK-8
Expansion project using the final $12.6 million (plus developer fees for a total approximate project cost of $15 million).
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(continued)
In 2006 and again in 2012, COPs were issued to fund
capital projects in addition to the amounts provided by the voter approved GO Bonds.
MJUSD planned to repay the 2012 COPs with developer
fees, noting that if insufficient developer fees were available, the General Fund would cover any shortfall.
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“A portion of the proceeds from the sale of the
Certificates will be deposited in the Construction Fund in
consist of costs associated with the purchase of relocatable classrooms currently being leased along with reimbursement to the District for prior expenditures related to the acquisition of real property known as the “Hammonton/Smartsville Property.””
“The District may add, change, or remove projects at their
discretion.”
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(from page 14, Official Statement Document, 2012 Certificates of Participation)
Plan of Refunding 2006 COPs:
“A portion of the proceeds from the sale of the Certificates (2012) will be irrevocably deposited in the Escrow Fund… and the moneys in the Escrow Fund will be used to pay… the Prior Certificates (2006) will be deemed paid and no longer outstanding.” General Fund balance was also used to pay the 2006 COPs and the 2006 COPs were fully repaid in 2018.
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(from page 14, Official Statement Document, 2012 Certificates of Participation)
At time of issuance of the 2012 COPS, the payment plan for
the COPS was as follows: “Although not pledged for repayment, the District intends to use developer fees deposited into the District’s Capital Facilities Fund to make payments. To the extent the developer fees are insufficient to make principal and interest payments on the COPs, the District intends to cover any shortfall from its General Fund.”
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(from page 10, Official Statement Document, 2012 Certificates of Participation)
Today’s low interest rate environment is an
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Receive direction from the Board to pursue
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